Economic Diplomacy

Economic diplomacy deals with the nexus between power and wealth in international affairs.

Economic diplomacy not only promotes the state’s prosperity but also, as occasion demands and opportunity permits, manipulates its foreign commercial and financial relations in support of its foreign policy – as in the case of sanctions against Iran. Accordingly, economic diplomacy is a major theme of the external relations of virtually all countries. At home, economic ministries, trade and investment promotion bodies, chambers of commerce, and of course foreign ministries, are all participants in economic work. Current trends include increasing collaboration between state and non-official agencies, and increased importance given to WTO issues, the negotiation of free trade and preferential trade agreements, and accords covering investments, double taxation avoidance, financial services and the like. Abroad, embassies, consulates, and trade offices handle economic diplomacy. The main focus is on promotion, to attract foreign business, investments, technology and tourists. Economic diplomacy connects closely with political, public and other segments of diplomatic work. This online course is practice-oriented, and aims at capacity development.

Course details

Economic diplomacy deals with the nexus between power and wealth in international affairs.

Economic diplomacy not only promotes the state’s prosperity but also, as occasion demands and opportunity permits, manipulates its foreign commercial and financial relations in support of its foreign policy – as in the case of sanctions against Iran. Accordingly, economic diplomacy is a major theme of the external relations of virtually all countries. At home, economic ministries, trade and investment promotion bodies, chambers of commerce, and of course foreign ministries, are all participants in economic work. Current trends include increasing collaboration between state and non-official agencies, and increased importance given to WTO issues, the negotiation of free trade and preferential trade agreements, and accords covering investments, double taxation avoidance, financial services and the like. Abroad, embassies, consulates, and trade offices handle economic diplomacy. The main focus is on promotion, to attract foreign business, investments, technology and tourists. Economic diplomacy connects closely with political, public and other segments of diplomatic work. This online course is practice-oriented, and aims at capacity development.

By the end of this course, participants should be able to:

Describe how economic diplomacy has evolved, and how it plays a key role in international affairs, connecting closely with domestic priorities and development objectives in states.

Explain the role played by different actors, state and non-states, in the development of ‘whole of country’ policies, and how a good diplomatic system works with all the key stakeholders.

Apply the learning to the running of a commercial or economic section, and to the manner in which commerce chambers of individual enterprises can work with the foreign ministry and with diplomatic missions in the commercial and economic arena.

Apply the learning also to the promotion of exchanges of business delegations, and participation in trade exhibitions.

Assess current trends in the framework conditions of international trade and other economic exchanges.

Excerpt from course materials

Most countries would say today that a top priority of their diplomatic system, especially of their missions abroad, is the promotion of their country's external economic interests. Many embassies spend the bulk of their time on economic work. For example, the David Cameron UK government, within weeks of taking office in mid-2010, summoned all ambassadors to tell them that helping British business was their topmost priority. In 2012, the Dutch Foreign Ministry implemented reforms aiming 'to promote Dutch interests, with special focus on economic diplomacy’ (Government of the Netherlands, 2012).

Economic diplomacy differs from political diplomacy in one key aspect. Almost always, the direct beneficiaries or ‘end-users’ are business enterprises, not governments per se. This means that the government – the foreign ministry and embassies, the other economic agencies and promotional bodies – are facilitators, catalysts, and agents.

Course outline

The evolution of economic diplomacy: Diplomacy starts with trade: consulates precede ‘embassies’; the Levant Company sets up the English embassy in Constantinople, 1583; the subsequent advance of high politics; the age of imperialism and the slow recovery of economic diplomacy. Diplomacy ends with trade: growth of importance of international trade and capital flows (even to USA); new political need of diplomatic services to respond to business lobbies at home; Britain: near bankruptcy in 1945; a succession of official reports insists on overriding priority of commerce.

Economic diplomacy today: the definitions of economic diplomacy; principal content; the stages traversed by countries in practice of economic diplomacy; public diplomacy, image management and economic diplomacy; how economic diplomacy connects with other branches of diplomatic work; working with home actors, learning from them.

The regulatory environment and the domestic context: extent and consequences of ‘managed trade’; dumping and complaints procedures; trade negotiations; role of chambers of commerce and industry associations; special role of embassies in such domestic outreach; role of think tanks and NGOs; public diplomacy dimension of trade.

The embassy economic section: the staff of the economic section, including the importance of locally engaged staff; the position of the section within the embassy and comparisons between diplomatic services; how many ambassadors have had significant experience of economic diplomacy? Does this suggest that economic diplomacy has the real priority that the usual rhetoric suggests? If not, why not?

Trade and investment promotion: importance of trade, focus on exports, pursuit of new markets and new products; dispute settlement and role of official agencies; value and domestic role of foreign direct investment (FDI), portfolio, private equity and other forms of investment; broad and targeted promotion; role of specialised agencies; two-way FDI flows.

Craft skills: Business delegations and trade exhibitions: country promotion exhibitions and specialised trade fairs; selection, observation and participation; exhibition techniques and best practices; organisation of business delegations; role of missions in both outbound and homebound groups; planning, preparation and follow-up; delegations accompanying summit and other official visits.

Economic sanctions: why economic sanctions became popular in the 20th century; the variety of purposes they are designed to serve; the different kinds of sanctions; the role of embassies; how states defend themselves against sanctions, including cultivation of business lobbies (e.g. South Africa under apartheid; Iraq under Saddam; Iran today); smart sanctions versus stupid sanctions.

WTO and Free Trade Areas (FTAs): basic features of the multilateral trading system; WTO process and its future; likely outcomes of current, convoluted negotiations; preferential trade agreements (PTAs), including commonalities and differences; are FTAs and PTAs building or stumbling blocks to a multilateral trading system?

Practising diplomats, civil servants, and others working in international relations who want to refresh or expand their knowledge under the guidance of experienced practitioners and academics.

Trade and economic affairs officials, those working in commerce chambers, think tanks, NGOs and other entities working in or observing economic diplomacy, those that study the country’s external economic actions, commercial diplomats from the corporate sector.

Postgraduate students of diplomacy or international relations wishing to study topics not offered through their university programmes or diplomatic academies and to gain deeper insight through interaction with practising diplomats.

Postgraduate students or practitioners in other fields seeking an entry point into the world of diplomacy.

Journalists, staff of international and non-governmental organisations, translators, business people and others who interact with diplomats and wish to improve their understanding of diplomacy-related topics.

This course is conducted entirely online over a period of ten weeks. Reading materials and tools for online interaction are provided through an online classroom. Each week, participants read the provided lecture text, adding questions, comments and references in the form of hypertext entries. Lecturers and other participants read and respond to these entries, creating interaction based on the lecture text. During the week, participants complete additional online activities (for example, further discussion via blogs or forums, quizzes, group tasks, simulations or short assignments). At the end of the week, participants and lecturers meet online in a chat room to discuss the week’s topic. To complete the course successfully, participants must write several essay assignments. Courses are based on a collaborative approach to learning, involving a high level of interaction.

This course requires a minimum of five to seven hours of study time per week.

All course applicants must have regular access to the Internet (dial-up connection is sufficient, although broadband is preferable).

Applicants for certificate courses must have:

An undergraduate university degree OR three years of work experience and appropriate professional qualifications in diplomacy or international relations.

Sufficient ability in the English language to undertake postgraduate level studies (including reading academic texts, discussing complex concepts with other course participants, and submitting written essay assignments of up to 2500 words in length).

Applicants for accredited courses must meet University of Malta prerequisites:

Bachelor's degree in a relevant subject with at least Second Class Honours.

English language proficiency certificate obtained within the last two years (minimum requirements: Internet-based TOEFL (iBT) – 95 (with a writing score of at least 24); IELTS: 6.5 (with a minimum of 6.0 in each element); Cambridge: Advanced Certificate with Grade C or better). Please indicate on the application form if you are still waiting for your English language proficiency results.

Course fees depend on whether you wish to obtain university credit for the course:

€850 (University of Malta Accredited Course)

€690 (Diplo Certificate Course)

Applicants must pay full fees upon official acceptance into the course. The fee includes:

Tuition fee

Access to all course materials online, via Diplo’s online classroom

Personal interaction via the online classroom with course lecturers, staff and other participants

Online technical support

University of Malta application fee (for University of Malta Accredited Courses only)

Access, via the Internet, to the University of Malta e-journal collection (University of Malta Accredited Courses only)

For Diplo Certificate Courses, postgraduate level e-certificate issued by DiploFoundation on successful completion of course requirements (interaction and participation, all assignments) which can be printed or shared electronically via a permanent link

Financial assistance

Discounts are available for more than one participant from the same institution. A limited number of partial scholarships are available for diplomats and others working in international relations from developing countries.

To apply for a scholarship please upload your CV and a motivation letter with your application. The motivation letter should include:

Details of your relevant professional and educational background.

Reasons for your interest in the course.

Why you feel you should have the opportunity to participate in this course: how will your participation benefit you, your institution and/or your country?

As Diplo's ability to offer scholarship support is limited, candidates are strongly encouraged to seek scholarship funding directly from local or international institutions.

English translations of degree(s) and transcripts if they are not in English, signed and stamped by translator.

English language proficiency certificate obtained within the last two years (minimum requirements TOEFL: paper-based – 650; Internet-based – 95. IELTS: 6.5. Cambridge: Proficiency Certificate with Grade C or better). Please indicate on the application form if you are still waiting for your English language proficiency results.

Photocopy of personal details pages of your passport.

If you are requesting financial assistance, please include your CV and a motivation letter with your application. The motivation letter should include details of your relevant professional and educational background; reasons for your interest in the course; and why you feel you should have the opportunity to participate in this course: i.e. how will your participation benefit you, your institution and/or your country? Financial assistance from DiploFoundation is available only to applicants from developing countries.

Please note that by sending your application package, you are confirming that you have read DiploFoundation's Privacy Policy. Please note that DiploFoundation will process and share your personal data with third parties (including the University of Malta) for admissions and academic matters, administering finance, and administrative purposes in accordance with the Privacy Policy.

Cancellation Policy

Diplo reserves the right to cancel this course if enrolment is insufficient. In case of cancellation, Diplo will notify applicants shortly after the application deadline. Applicants who have paid an application fee may apply this fee towards another course or receive a refund.

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Diplo is a non-profit foundation established by the governments of Malta and Switzerland. Diplo works to increase the role of small and developing states, and to improve global governance and international policy development.